Educating Buyers Drives ROI, Fosters Loyalty, and Aligns Incentives
TL;DR
- Educating buyers shifts conversations from transactional selling to empowerment, driving 3-10x ROI by fostering brand loyalty and influencing purchasing decisions beyond mere features and pricing.
- Prioritizing people over profit creates a sustainable flywheel where protected teams deliver quality work, leading to client retention and organic agency growth.
- Value-based pricing, paid for output rather than billable hours, aligns agency incentives with client outcomes, fostering accountability and potentially solving budget pressures.
- Experiential marketing's impact lies in its ability to drive behavioral shifts through instant trial and interaction, offering a unique, measurable result distinct from broad reach campaigns.
- Engineered engagement through structured connection points and consistent feedback loops is the antidote to burnout, fostering a culture where people feel valued and connected.
- Proactive planning for top talent departures by grooming successors ensures business continuity and facilitates smoother transitions, maintaining team strength.
- The Enthuse Foundation provides crucial non-dilutive funding to women-led CPG brands, addressing a significant gap in venture capital and angel investment access.
Deep Dive
Enthuse Marketing differentiates itself by prioritizing education for trade buyers, not just consumers, recognizing that these gatekeepers significantly influence product selection and brand success. This approach shifts the focus from transactional selling to empowering buyers with knowledge about product efficacy and brand elevation, thereby creating deeper loyalty and driving substantial ROI for brands.
The core of Enthuse Marketing's strategy lies in educating key decision-makers, such as General Managers, Beverage Directors, and bartenders, on why specific brands enhance their offerings and customer experience. This educational model, termed "people over profit," is presented as a smart business strategy: protecting the team fosters better work, which in turn retains clients and creates a sustainable growth flywheel. This contrasts with traditional agencies that may prioritize short-term wins over long-term team well-being.
A significant second-order implication of this educational approach is the shift in how brands are perceived and integrated into the buyer's workflow. Instead of simply pushing product features and pricing, Enthuse Marketing teaches staff how to effectively use and present brands, embedding them into the desired customer experience. This leads to demonstrably higher ROI, with reported gains of three to ten times over traditional sales methods, by ensuring products are not just stocked but actively recommended and utilized.
The agency's distinct model, built around "teachers" and "category experts" rather than a traditional account-strategy-creative trio, presents a challenge in client onboarding. Explaining this unique structure and its value proposition to clients is crucial for adoption, as it deviates from familiar agency frameworks. This requires educating clients on how this specialized talent pool drives unique program outcomes, thereby justifying the investment.
The prevailing industry habit of billing by the hour is identified as a detrimental practice that obstructs true value creation. Enthuse Marketing advocates for a shift to value-based pricing, where compensation is tied to specific, measurable outputs and outcomes, such as growing brand share. This model incentivizes both the agency and the client towards clear objectives, fostering greater accountability and potentially mitigating budget pressures by aligning fees directly with delivered value rather than time spent.
The Enthuse Foundation, funded by agency profits, addresses a critical gap in venture capital funding for women-owned businesses, particularly in the CPG sector. With women receiving less than 2% of VC funding, the foundation provides non-dilutive grants and community support, aiming to enable these businesses to scale and reach market viability. This initiative highlights a systemic issue where women entrepreneurs struggle to secure the capital needed to transition from side hustles to sustainable businesses, underscoring the profound impact of unequal access to funding.
A guiding principle for founders is to "build the work that earns it" rather than chase the spotlight. This philosophy emphasizes the power of consistently delivering high-quality work and cultivating strong teams. By focusing on intrinsic excellence, opportunities and client interest naturally follow, creating a self-sustaining cycle of success and obviating the need for constant external validation or prospecting.
Action Items
- Audit agency structure: Define 3-5 required roles for client understanding (ref: traditional agency model).
- Create runbook template: Outline 5 sections (setup, common failures, rollback, monitoring) to prevent knowledge silos.
- Implement value-based pricing: Define 1-2 key performance indicators (KPIs) for client engagements (ref: billable hours).
- Track 5-10 team engagement metrics weekly: Identify disengagement patterns to enable proactive intervention.
- Draft succession plan: Identify 1-2 internal candidates for key roles to prepare for talent departures.
Key Quotes
"So we saw this as the GM the beverage director the bartender they're the ones that are choosing from thousands of options but the marketing that was going to them or the comms strategy to those buyers was very flat it was just features and pricing and sell sheets so we changed that and we felt that educating that buyer was a true differentiator and we teach buyers why brands work on their shelves why they work for their guests how they elevate the menu how a perfect cocktail can be made whether that's a martini a margarita or manhattan then teaching people about the brand shifts the conversation so you're not selling them anymore you're empowering them to make decisions and the brands i want to say coming for the ride and their their second but that was really when we saw the need for education and it was really in the hospitality space and then how that could translate into other spaces as well so we don't just focus on hospitality anymore but that's kind of where we started"
Kim Lawton explains that her agency, Enthuse Marketing, identified a gap in traditional marketing by focusing on the "point of selection" rather than just the "point of purchase." Lawton argues that educating buyers about why a brand works and how it elevates their offerings shifts the dynamic from selling to empowering, creating a more sustainable and impactful approach. This strategy, she notes, originated in the hospitality sector but has since expanded to other industries.
"so commercial metrics are very much how we look at our return and when you look at the feature and benefit way of selling you get a lot of short term wins you might get a product a brand on the shelf but you don't get the pull through and that's really where we have a i would say a business conversation with brand teams to say it's not that difficult to go put your brand on say a pricing model of with you buy a case you can have an extra case and get the brand into an account it's getting consumers to actually order it getting the bartender to to say and recommend it is the challenge and showing that we have three to 10x roi on our programs that we show clients and once you can give them those kinds of numbers their the conversation becomes easy"
Lawton emphasizes that Enthuse Marketing's success is measured by commercial metrics, highlighting that a focus on features and benefits yields only short-term gains. She explains that true success lies in achieving "pull through," which is demonstrated by consumers actually ordering the product. Lawton states that by providing clients with data showing a three to ten times return on investment for their educational programs, the business case for this approach becomes clear and persuasive.
"and it was really more so about not not so much about what others got wrong as but more so what we or i wanted to bring forward and what i wouldn't compromise on and the non negotiable for me was never short term wins over the at the expense of people so choosing people over profit it's just it's not a soft thing it's actually very smart because when you protect your team they protect the work when the work is protected the clients stay and it has its own flywheel and i think that principle has been in our dna since day one of people over profit"
Lawton reflects on the foundational principles of Enthuse Marketing, stating that her "non-negotiable" was prioritizing people over profit. She clarifies that this is not merely a sentimental approach but a strategic one, asserting that protecting the team leads to them protecting the work, which in turn retains clients and creates a positive cycle. Lawton emphasizes that this "people over profit" philosophy has been integral to the company's DNA since its inception.
"i truly believe that engaged people don't burn out and disconnected people do so for us it's all about how do you keep people engaged and when you have people spread across the country like we do we have over 500 people around the us that connection isn't optional it has to be engineered and so when covid happened and we had to all leave the office we were large majority of people were in it wasn't hard on us because we had engineered ways of engagement that were already part of our our ways of working"
Lawton posits that employee burnout stems from disengagement, not workload, and that maintaining engagement is paramount for her company, which operates with over 500 people nationwide. She stresses that connection must be intentionally engineered, noting that this proactive approach made the transition to remote work during COVID-19 seamless for Enthuse Marketing. Lawton highlights that their pre-existing engineered engagement strategies were already integrated into their operational methods.
"i hate them i've always hated them i don't run our teams on them time doesn't equal value and agencies should be paid for outputs i think that's an industry wide change that unless every agency took a stand and did it it won't probably ever happen but if we could shift to value based pricing we'd solve some of those budget pressures because your your output would be paid in terms of the value it's generating for the client and it would increase accountability on both sides you get better briefs and client teams would have higher expectations"
Lawton expresses a strong dislike for the practice of billing by the hour, arguing that time spent does not equate to value delivered. She advocates for a shift in the industry towards value-based pricing, where agencies are compensated for their outputs and the value they generate for clients. Lawton believes this change would alleviate budget pressures, enhance accountability on both client and agency sides, and lead to improved briefs and higher client expectations.
"not to chase the spotlight i think it's build the work that earns it that's a quote i i don't know who said it but it's something that i truly live by and if you if you continually do great work and build great teams and all of it like the you don't need to look for opportunities and you're not constantly trying to find a new client they'll be looking for you and i i just think oftentimes we get fascinated by what maybe someone else is doing and want to chase a dream that way or chase fantasy but it's like build great work build great teams and all of a sudden all of that comes together magically"
Lawton shares a guiding principle for her journey: "build the work that earns it," rather than chasing the spotlight. She explains that consistently producing great work and building strong teams naturally attracts opportunities and clients, eliminating the need for constant searching. Lawton advises against being distracted by others' successes or chasing unrealistic dreams, emphasizing that focusing on building excellence will lead to magical outcomes.
Resources
External Resources
Books
- "Ask For It" - Recommended for its insights on women negotiating and asking for what they want.
People
- Kim Lawton - Founder & CEO of Enthuse Marketing, discussed for her expertise in experiential marketing, leadership, and her work with the Enthuse Foundation.
Organizations & Institutions
- Enthuse Marketing - Agency focused on educating buyers and driving results through experiential marketing.
- Enthuse Foundation - Nonprofit organization founded by Kim Lawton to support and mentor women-owned businesses, particularly in the CPG space, by providing non-dilutive funding.
- Inspira Marketing - Previous agency founded by Kim Lawton, mentioned as providing an existing infrastructure that facilitated the launch of Enthuse Marketing.
- Toastmasters - Mentioned as a resource for providing presentation skills training to founders.
Other Resources
- People over profit - Core principle of Enthuse Marketing, emphasizing the importance of prioritizing employees, which is seen as a smart business strategy leading to client retention and work quality.
- Billable hours - Criticized as a legacy practice in agencies; the argument is made for shifting to value-based pricing where agencies are paid for outputs and the value generated for the client.
- Value-based pricing - Proposed as an alternative to billable hours, where agencies are paid based on achieving specific client outcomes, such as growing market share.
- Non-dilutive funding - Type of funding provided by the Enthuse Foundation to women-owned businesses, meaning it does not require giving up equity.
- "Build the work that earns it" - A principle adopted by Kim Lawton, emphasizing the importance of focusing on creating great work and building strong teams, which in turn attracts opportunities.